Retrocom REIT Announces Third Quarter 2013 Results

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY NON-CANADIAN SOURCE

Retrocom Real Estate Investment Trust (the "REIT") (TSX:RMM.UN) today announced results for the third quarter ended September 30, 2013.

Highlights

Acquired two investment properties for $62 million consisting of approximately 215,000 square feet of gross leasable area.

Net operating income increased 37.5% and 22.8%, respectively for the three and nine months ended September 30, 2013, compared to the same periods of 2012.

FFO, adjusted increased by 18.3% to $7.8 million for the three months ended September 30, 2013 and by 26.1% to $21.8 million for the nine months ending September 30, 2013, compared to the same periods of 2012.

Weighted average cost of mortgage debt at September 30, 2013 decreased to 5.11%, compared to 5.38% at September 30, 2012.

Portfolio occupancy was 93.0% compared to 89.4% in December 2012 and 88.1% in September 2012.

Average in place rent was $11.55 per square foot up from $10.93 at December 31, 2012.

Obtained new mortgage loans during the quarter totalling approximately $61 million at weighted average interest rate of 4.69%.

Richard Michaeloff, President and CEO of the REIT, said, "I am pleased with our positive third quarter results. Our repositioning of Retrocom continues to move forward and acquiring two income properties from Smartcentres and Walmart Canada Realty Inc. during the quarter continues our commitment to add high quality assets to our portfolio."

Financial Highlights

Three months ended September 30

Nine months ended September 30

(all amounts in $000's, except per unit amounts and ratios)

2013

2012

2013

2012

Rental revenue and other income

26,462

19,974

71,090

59,672

Property operating expenses

11,180

8,916

30,948

26,950

Property operating income

15,282

11,058

40,142

32,722

Share of joint venture net operating income

317

286

949

732

Net operating income (1)

15,599

11,344

41,091

33,454

Trust expenses

1,100

1,039

3,508

3,032

Transaction costs

-

-

1,502

-

Finance costs - joint venture operations

63

59

179

112

Finance costs - operations

6,628

4,737

16,746

14,207

Finance costs - subscription receipts

-

-

411

-

Finance costs - distributions on Class B Units

1,073

1,025

3,123

3,075

Income before fair value gains (losses) and other income

6,735

4,484

15,622

13,028

Fair value gains (losses) associated w ith financial instrument

4,634

(7,790

)

12,737

(10,276

)

Fair value gain (losses) on investment property

(3,191

)

11,203

(8,669

)

18,719

Fair value gains (losses) on participant's rights under LTIP

53

(56

)

129

(34

)

Fair value gains on joint venture property

466

1,100

1,219

629

Loss from sale of investment property

(293

)

-

(293

)

(105

)

Other income

-

1,090

1,048

1,090

Income for the period

8,404

10,031

21,793

23,051

FFO, adjusted (2)

7,844

6,629

21,793

17,276

FFO, adjusted per unit

$

0.111

$

0.133

$

0.342

$

0.352

FFO, adjusted payout ratio

101.4

%

84.6

%

98.7

%

95.9

%

Distributions per unit

$

0.1125

$

0.1125

$

0.3375

$

0.3375

Full Financial Results and MD&A will be available on SEDAR (www.sedar.com) as well as the Investors Relations section of the REIT's website (www.rmmreit.com).

A non-IFRS measurement, calculated by the REIT as rental revenue (net rents, property tax and operating cost recoveries, as well as other miscellaneous income from tenants) less operating expenses for properties.

The reconciliations from net income (loss) to Funds from Operations, adjusted are included in the REIT's MD&A.

The REIT's management considers Net Operating Income, Funds from Operations, Funds from Operations, adjusted, and Debt to Gross Book Value ratio to be indicative measures in evaluating the REIT's performance. The table above includes non-IFRS information that should not be construed as an alternative to net income or cash flows from operations and may not be comparable to similar measures presented by other issuers as there is no standardized meaning prescribed by IFRS.

Conference Call

Retrocom REIT will hold a conference call on Friday, November 8, 2013 at 11:00 am (ET). Participating on the call will be members of the REIT's senior management.

Investors are invited to access the call by dialling 416-644-3415 or 1-877-974-0445. A recording of this call will be made available Friday, November 8, 2013 beginning at 2:00 pm (ET) through to Friday, November 22, 2013. To access the recording, please call 416-640-1917 or 1-877-289-8525 and use the reservation number 4645087#.

About Retrocom REIT

Retrocom REIT is an unincorporated, open-end real estate investment trust which focuses on owning and acquiring retail properties across Canada with the goal of enhancing long-term Unitholder value.

Forward-Looking Information

This press release may contain forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", and by discussions of strategies that involve risks and uncertainties. The forward- looking statements are based on certain key expectations and assumptions made by the REIT. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Although management of the REIT believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that future results, levels of activity, performance or achievements will occur as anticipated. Neither the REIT nor any other person assumes responsibility for the accuracy and completeness of any forward-looking statements, and no one has any obligation to update or revise any forward- looking statement, whether as a result of new information, future events or such other factors which affect this information, except as required by law.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of the Retrocom REIT have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an exemption from the registration requirements of U.S. securities laws.